Industry perspective
Section “3.8” is the first major promotion node of e-commerce in 2022, and its importance is self-evident. According to the data of e-commerce daily, in the pre-sale activity on February 27, Li Jiaqi’s live room was watched by more than 70 million people, with sales of 2.825 billion yuan. We collated and compared the pre-sale of various brands in Li Jiaqi’s live studio from 2021 to 2022.
Domestic brands: the main brand star products are the first to be promoted, and the discount is basically the same as that in previous years.
Local companies are the first to participate in the star products of main brands, with little difference in discount, all at a discount of 3-40%. Compared with last year, product prices and gifts have not changed much, the overall discount is basically the same as last year, and the number of SKUs participated by some brands has increased.
Cooperation between key brands and Li Jiaqi’s live broadcast room: 1) Yunnan Botanee Bio-Technology Group Co.Ltd(300957) : Winona 50g moisturizing special care cream in 4 packs and 50g clear sunscreen continued last year’s activities. 2) Proya Cosmetics Co.Ltd(603605) 3 main products (double anti essence, ruby essence, “early C evening A” suit) participate in the pre-sale activities. 3) Bloomage Biotechnology Corporation Limited(688363) : the intensity of the activity of the second throw of the quarter is the same as that of last year. The new kinetic energy supports light cream and the two products of the war pox are involved in the pre-sale activities.
International brands: actively participate in the promotion of European and American / Japanese brands. 1) European and American brands: the prices of some products have increased slightly, attracting consumers by giving more gifts, and the overall promotion has increased. 2) In order to improve competition, Japanese brands cut prices slightly and give more gifts. 3) Korean brands, snow show, Lanzhi and others participate in a small number of SKUs.
International brands vs local brands: international brands are still dominant, and domestic brands play more steadily,
Big promotion is still the home of international brands. No matter the number of brands or products involved, there are more international brands. At the same time, European and American brands actively participated. Although the price of a small number of products increased slightly due to the daily price increase, the number of gifts increased compared with last year. In terms of sorting, the discount increased year-on-year; Shiseido continues its strategy of reducing prices and increasing gifts to improve product competitiveness; The number of SKUs participated by Korean brands, snow show and Lanzhi is small.
Domestic brands play more steadily: 1) in terms of selection, like international brands, domestic brands choose trump products to participate in the pre-sale of Li Jiaqi’s live studio; 2) In terms of preferential strength: the discount strength of international high-end brands is about 4-50%, and that of domestic brands is about 3-40%; In vertical comparison, the preferential strength of domestic brands is basically the same as that of last year. Some star “big single products” have occupied a certain market share and consumer intelligence, and still have strong attraction under the background of large preferential strength of international brands.
Investment advice
The slowdown of demand side growth combined with the implementation of new regulations has intensified the differentiation of brand side and highlighted the advantages of head brand. Festival Promotion attracts consumers through full reduction, bonus and price reduction, and the “siphon effect” is becoming more and more obvious. The price of star products is relatively high and there are few daily preferential activities. At the same time, the product power is recognized by consumers and has become the first choice for consumers to hoard goods. It is suggested to pay attention to 1) efficacy skin care leading brands are expected to sell beautiful Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , relying on Star products and big promotion discounts; 2) “C A”, a large single product combination, helps the Tao channel to be beautiful and vibrant channel to promote Proya Cosmetics Co.Ltd(603605) under the tiktok catalytic cascade. 3) the sonic boom was self broadcast, and the ranking in February has improved significantly. The channel of Dr. Tao Er / Yi Lian has promoted tiktok Lushang Health Industry Development Co.Ltd(600223) which is expected to grow rapidly. 4) Multi brand and multi-channel Bloomage Biotechnology Corporation Limited(688363) etc.
Risk tips
The terminal retail is weak, the price of international brands is lower after discount, and the competition is intensified
